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The US Securities and Exchange Commission (SEC) is reportedly rejecting two Solana ETF applications, potentially marking Chair Gary Gensler's final jab at the crypto industry.
"I’ve confirmed that the @SECGov has notified at least two of the five prospective issuers that it will reject their 19b4 filings for the $SOL spot ETFs," Fox Business journalist Eleanor Terrett tweeted.
🚨SCOOP: I’ve confirmed that the @SECGov has notified at least two of the five prospective issuers that it will reject their 19b4 filings for the $SOL spot ETFs.
— Eleanor Terrett (@EleanorTerrett) December 6, 2024
The consensus here, I’m told, is that the SEC won’t entertain any new #crypto ETFs under the current administration.
Although frustrating, the news isn't completely unexpected. "Solana ETFs getting told to take a hike by the Genz-led SEC (which @JSeyff predicted in a recent note)," Bloomberg ETF analyst Eric Balchunas responded to Terrett's tweet.
Nice scoop. Solana ETFs getting told to take a hike by the Genz-led SEC (which @JSeyff predicted in a recent note). Look for them to just refile after the new Atkins regime takes over. https://t.co/0AEOHg3ZWH
— Eric Balchunas (@EricBalchunas) December 6, 2024
Balchunas added that he expects applicants to refile for Solana ETFs when Paul Atkins commences his stint as Gensler's successor.
Grayscale, Bitwise, Canary Capital, and VanEck have all filed for Solana ETFs over the past six months, with Grayscale submitting theirs at the start of December.
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The filings underscore the increasing institutional interest in Solana while Grayscale's conversion of its Solana Trust mirrors the company’s successful transitions of its flagship Bitcoin and Ethereum trusts into ETFs earlier this year.
Solana has performed impressively over the year, rising more than 210% since January. Trump's election win further boosted the third-fifth largest cryptocurrency to its all-time high last week of $263.
Speaking to Blockworks, Bitwise CEO Hunter Horsley described SOL as "an incredible emerging asset and story," highlighting that Bitcoin ETF buyers might be looking for the "next big thing in crypto" and for a lot of investors" the answer is Solana.
BRN analyst Valentin Fournier further explained that Solana memecoins have strengthened the blockchain's resilience.
"While we don't believe the frenzy can withstand a bear market, memecoin trading is nothing less than an online casino driven by a strong community feeling. This alone can sustain strong transaction levels, even if markets were to go down," he said. "Platforms like Pump.fun are booming, with record-breaking active addresses and a steadily growing user base."
Last week, President-elect Donald Trump announced that he intends to nominate cryptocurrency advocate Atkins to chair the SEC. Describing Atkins as a "proven leader for common sense regulations,” Trump has backed the CEO of Patomak Partners as the frontrunner to replace Gensler.
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